Coca-Cola operates in over 200 countries, and it is considered one of the most valuable and recognisable brands in the world. ✅ Sign up to Stake to start investing in U.S. blue chip shares with $3 brokerage. However, KO’s average return over the past decade is the worst on this list. Looking forward, the company is trading at a P/E ratio https://forex-world.net/ that is toward the top of its five-year range, meaning it does not stand out from a valuation perspective. The resources below will give you a better understanding of blue chip investing, long-term investing, and dividend growth investing. Apple’s 2022 revenues were $394.33 billion, and it earned just under $100 billion in profits.

• Unless soda (and every other beverage category) suddenly stops being purchased, expect Coca-Cola to continue its incredible streak of increasing profits and rewarding shareholders via dividends.
• They are known for their long-term track records of stable and reliable growth, helping them operate profitably regardless of current economic conditions.
• Learn more about how Morningstar values stocks in Morningstar’s Guide to Stock Investing.
• Index funds and ETFs track an index, which is a specific segment of the stock market.

On April 15th, 2023, Washington Federal released second-quarter fiscal year 2023 results for the period ending March 31st, 2023. For the quarter the company reported quarterly earnings of $65.9 million which represents 33.6% growth compared with quarterly earnings of $49.4 million in the same quarter ended March 31, 2022. Diluted earnings-per share equaled $0.95 compared to $0.70 in the year ago period, a 35.7% increase. Washington Federal, Inc. is the parent company of Washington Federal, a national bank that runs more than 200 offices across eight states, primarily in the West of the United States. Key states include Washington, Oregon, and Arizona, which account for nearly 80% of loans. Profits are derived mostly from interest sources, as non-interest income makes up only about 9% of net revenue.

Blue-Chip Stock #3: Washington Federal Inc. (WAFD)

Half of its loans are in its home state, followed by 20% and 15% in neighboring Illinois and Minnesota, respectively. About 30% of its portfolio is commercial real estate and construction loans. For the quarter, revenue grew 128.3% to $2.58 billion, but this was $160 million less than expected.

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Other Blue Chip Stock Resources

These index funds or exchange-traded funds (ETF) mimic an index, which is a portion of the stock market. Since blue-chip stocks have large market caps, these funds are a good way to gain access to blue-chip stocks. Aside from their reliability, blue-chip stocks are appealing because they do tend to pay consistent dividends. A market cap is the means by which we quantify the size and value of a company. Blue-chip stocks tend to be large-cap stock, which translates into a market valuation that exceeds $10 billion. As befits the sometimes high-risk nature of stock picking, the term “blue chip” derives from the card game poker.

We nevertheless think Comcast will be able to limit broadband share losses in the coming years while enjoying solid pricing power, says Morningstar director Mike Hodel. NBCUniversal is more challenged, however, though we like the idea of expanding the theme park business around key content franchises, he adds. A solid balance sheet has allowed Comcast to aggressively repurchase shares and pay decent dividends. Pfizer stock offers the highest trailing yield among our list of the best blue-chip stocks to buy for the long term. We don’t think the market fully appreciates the pharmaceutical giant’s ability to offset major patent losses over the next five years, argues Morningstar director Damien Conover.

Where did the name ‘blue chip’ come from?

A five year beta of 0.39 sums up the company’s steady attributes. The stock is currently trading close to its all-time high, despite seeing only a small rise year-to-date. This pricing power has led to strong cash flow, with shareholders benefitting through consistent dividends. Lincoln National Corporation offers life insurance, annuities, retirement plan services and group protection. The corporation was founded in 1905 as The Lincoln National Life Insurance Company. Permission from Abraham Lincoln’s son to use the former president’s name was granted.

In 1969, Lincoln National Corp begins trading on the New York Stock Exchange and the Midwest Stock Exchange. On April 19th, 2023, Zions Bancorporation released its first quarter 2023 results for the period https://bigbostrade.com/ ending March 31st, 2023. For the quarter, the company reported net income of $204 million which represents a 2% increase compared with a quarterly net income of $203 million in the same quarter of 2022.

Should You Invest in Blue Chip Stocks?

Many blue chips generally have an extensive history of profitability and have growth potential. Many blue chips also have considerable market capitalization that rank among the market’s largest by that metric. Furthermore, many blue chips return excess capital back to shareholders either through dividend or share buybacks or both. Alphabet is another blue chip stock worth considering if you’re buying blue chip stocks and creating a diversified portfolio with large market caps and a proven track record of growth. Mastercard is an American multinational financial services corporation that was founded in 1966. The company operates a global payment system that enables businesses and consumers to make electronic transactions.

The stocks of these high-quality companies with large market capitalizations look undervalued today. As a result of the uncertainty, it could be a good idea for long term investors to own a well diversified portfolio of leading stocks across many different sectors. Its total shareholder yield is also the second-highest on this list, buoyed by a strong dividend yield. Going back to 2021, GS’s peak-to-trough decline of 33% is among the largest declines of companies included on this list. Despite this, over a long-term horizon, Goldman Sachs has performed strongly, generating a strong average return over the past decade.

The Walt Disney Company (NYSE:DIS)

Another way for investors to gain exposure to blue chip stocks is through an index fund that benchmarks the Dow Jones Industrial Average (DJIA). This consistency in creating profits leads to strong long-term returns and regular dividend increases, making them excellent investments for long-term investors. The following blue chip stock list includes list some of the most long-term successful stocks, and some of the fastest growing. A blue-chip fund is a bundle of blue-chip stocks that are professionally arranged like a fine bouquet.

These types of stocks regularly pay dividends to investors and possess other indicators of success. Dallas-based Texas Instruments generates over 95% of its revenue from semiconductors and the remainder from its well-known calculators. Texas Instruments is the world’s largest maker of analog chips, which are used to process real-world signals such as sound and power.

If the economy slows further given the interest rate increases, blue chip stocks might not do well. If valuations in the broader market decreases, the valuations of many blue chips could decrease too. ABBV’s dividends are where the company shines as a blue chip stock. The five-year average dividend yield is 4.4%, and the company has hiked dividends for over 50 consecutive years.

• The purpose of the watchlist is to develop a list of the stocks you want to build positions in and then keep track of them, waiting for opportune entry points.
• The company owns and manages a diverse range of businesses, including insurance, energy, and retail.
• Going back to 2021, GS’s peak-to-trough decline of 33% is among the largest declines of companies included on this list.
• Since blue-chip stocks typically have large market caps, a large-cap index fund or ETF is a good way to get exposure to these companies.